India’s Next GCC Hubs May Rise Outside Big Cities

India’s states must move fast with incentives, approvals, and infrastructure to expand global capability centers beyond tier-1 hubs and unlock $200 billion by 2030, industry body CII said in a new report.

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  • States need to move fast with sharper incentives, easier approvals, and better infrastructure to spread global capability centers (GCCs) beyond metros and unlock nearly $200 billion by 2030, the industry lobby CII said in a new report.

    The model policy unveiled on Sunday calls for states to create dedicated facilitation cells to streamline clearances, design competitive fiscal packages, and invest in digital infrastructure ranging from high-performance computing clusters to data centers.

    It also presses states to integrate housing, transport, and civic amenities into their planning, ensuring new GCC hubs can match the quality of life of global cities.

    “This policy framework comes at a crucial moment when India is transitioning from being a global delivery destination to an innovation and leadership capital for multinational corporations,” CII said in a statement. “The new model policy provides states with a pragmatic, forward-looking, and investment-friendly roadmap that complements national efforts but also builds distinct advantages at the local level.”

    Nearly 95% of India’s 1,800-plus GCCs are clustered in the six largest cities of Bengaluru, Hyderabad, Chennai, Pune, Mumbai, and Delhi-NCR.

    CII’s roadmap is pitched as a toolkit to diversify that footprint, enabling tier-2 and tier-3 cities to emerge as future hubs for high-quality jobs and research. The industry body estimates that if expansion takes off beyond metros, GCCs could add close to $200 billion to India’s economy by the end of this decade.

    “To sustain leadership (in GCCs) and expand our share of global value chains, states must step up with clear, competitive, and innovation-oriented policies,” CII Director General Chandrajit Banerjee said in the statement. “States that act early and decisively will be the ones to reap the benefits of high-quality employment, deepened innovation ecosystems, and stronger integration into global value chains.”

    CII’s recommendations go beyond tax breaks and include viability gap funding for infrastructure, R&D tax holidays, support for green buildings aligned with ESG standards, and state-level data protection frameworks to address the compliance needs of global firms.

    The industry lobby also wants states to facilitate partnerships between GCCs, startups, and research institutions in frontier areas such as quantum computing and energy-efficient digital twins.

    It emphasized that branding and international outreach will be critical, while urging states to build city-specific GCC pitches and target markets such as Japan, the Nordic region, and the Middle East, rather than relying solely on national campaigns.

    The model policy has already attracted interest from several states, with some governments exploring adoption and localization of the recommendations, CII said.

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